How will the Benefit Cap affect you?

From November 2016 the Benefit Cap will limit the total amount of money a household receives through benefits.

In a nutshell, this means that UK households will have a £20,000 limit on benefits per year. Or £23,000 for London households.

The below is not an exhaustive list of scenarios that can be applied to the Benefit Cap. Some exclusions or differences may apply in your own personal circumstances. We would recommend seeking help from your local Jobcentre Plus office.

How much will I get in benefits each week with the Benefit Cap?

There are two limits based on where you live in the UK.

If you live outside of Greater London, and also receive Housing benefit, you’ll get:

  • £384 per week for couples with or without dependent children
  • £384 per week if you’re a single parent with dependent children
  • £257 per week if you’re a single person without children

 

If you live in Greater London the most you can get each week is:

  • £442 per week for couples with or without dependent children
  • £442 per week if you’re a single parent with dependent children
  • £296 per week if you’re a single person without children

 

Which benefits are affected by the cap?

According to gov.uk, the Benefit Cap will apply to the total value of benefits that everyone in your household receives.  This relates the following benefits:

  • Bereavement Allowance
  • Child Benefit
  • Child Tax Credit
  • Employment and Support Allowance (unless you get the ‘support’ component)
  • Housing Benefit
  • Incapacity Benefit
  • Income Support
  • Jobseeker’s Allowance
  • Maternity Allowance
  • Severe Disablement Allowance
  • Widowed Parent’s Allowance (or Widowed Mother’s Allowance or Widows Pension if you started getting it before 9 April 2001)
  • Universal Credit (unless you’ve had a work capability assessment and aren’t fit for work)

Source: Gov.uk

Who is excluded from the Benefit Cap?

If anyone in your household qualifies for Working Tax Credit or receives the following benefits, they won’t be affected by the cap:

  • Armed Forces Compensation Scheme
  • Armed Forces Independence Payment
  • Attendance Allowance
  • Carer’s Allowance
  • Disability Living Allowance (DLA)
  • Employment and Support Allowance (if you get the support component)
  • Guardian’s Allowance
  • Industrial Injuries Benefits (and equivalent payments as part of a War Disablement Pension or the Armed Forces Compensation Scheme)
  • Personal Independence Payment (PIP)
  • Universal Credit payments towards carer’s costs or for ‘limited capability for work and work-related activity’
  • War pensions
  • War Widow’s or War Widower’s Pension

Source: Gov.uk

If you’re currently worried about your finances, have unsecured debts from personal borrowing and would like to speak confidentially to an advisor who can talk to you about the benefits and considerations of a range of debt solutions and personal insolvency solutions, then please get in touch by calling 0800 048 1764. You can also visit www.harringtonbrooks.co.uk to request a call back at a time to suit you. By requesting a call, you are under no obligation to use our services. Harrington Brooks provide solutions to customers living in England, Scotland and Wales.

Should you choose to undertake a plan or arrangement, there may be consequences to consider, including restrictions on future expenditure, lending and on your ability to obtain further or future credit. Fees, terms and conditions apply. For further information and advice please visit www.harringtonbrooks.co.uk.

The services that we provide may be available at no cost from other government and charity based providers. Further information can be obtained from the Money Advice Service at https://www.moneyadviceservice.org.uk/en/tools/debt-advice-locator